Minimum wage Australia 2025: where it sits on the salary index

What is the national minimum wage?

The national minimum wage is the base hourly rate that most employees in Australia must be paid if they are not covered by a modern award or enterprise agreement. It is set each year by the Fair Work Commission after consultation with unions, employers, and the community. While the keyword "minimum wage australia 2025" points to the rate that applied from 1 July 2025, our on-site reference provides the most recent data from 1 July 2026. That rate is $26.44 per hour, or $1,004.90 per week for a full-time adult employee. Annualised, that comes to $52,255.

To understand where this figure sits against the national average, we use the Salary Index. The index compares any yearly gross pay to the full-time adult ordinary-time earnings benchmark, which is set at 100. For the 2026 national minimum wage, the index is 48.2 – meaning it is less than half the national line.

Where does the minimum wage sit on the salary index?

The how the index works page explains that the index is calculated as (annual gross pay ÷ national line) × 100. The national line is $108,352 per year (based on ABS Average Weekly Earnings, May 2026). For the minimum wage:

• Annual gross: $52,255
• Index: (52,255 ÷ 108,352) × 100 = 48.2

This index of 48.2 places the minimum wage well below the national average. For context, the entry-level award floor (the minimum for many award-covered workers) is $25.74 per hour, which annualises to about $51,480 – an index of roughly 47.5. Casual workers on the minimum wage receive a 25% loading, bringing their hourly rate to $33.05, or an annualised $65,331 (index 60.3). Even with the loading, casual minimum wage earners are still below the national line.

How does it compare across states and industries?

While the national minimum wage is the same across Australia, the cost of living and average earnings vary by state. Our states page shows indices from 88.6 in Tasmania to 109.9 in the ACT. A worker on the minimum wage in Tasmania (index 88.6) is closer to the state average than one in the ACT (index 109.9), but the dollar amount they earn is identical. The index simply shows how far below the state average the minimum wage sits.

Industry also matters. The industries page lists indices for sectors like retail trade (75.9) and accommodation and food services (72.5) – both well below 100. Minimum wage workers are common in these industries. In contrast, mining has an index of 154.7, meaning the typical mining employee earns far more than the national average. A minimum wage worker in mining would be an outlier, as award rates in that industry are much higher.

Junior rates and other considerations

The national minimum wage applies to adults (21 and over). Junior workers receive a percentage of the adult rate, as set by the National Minimum Wage Order. For 2026, the hourly rates are:

• Under 16: $9.73
• 16 years: $12.51
• 17 years: $15.28
• 18 years: $18.06
• 19 years: $21.81
• 20 years: $25.83

These are calculated by multiplying the adult minimum ($26.44) by the prescribed percentages. Modern awards may set different junior rates, so always check the applicable award.

Superannuation guarantee is 12% from 1 July 2026, with a maximum contribution base of $270,830. This means an employer must contribute an extra 12% of ordinary time earnings into the employee's super fund, on top of the minimum wage.

Tax and take-home pay

For a full-time worker earning the 2026 national minimum wage of $52,255, the 2026–27 tax rates (excluding Medicare) are:

• Nil on the first $18,200
• 15% on the next $26,800 (to $45,000)
• 30% on the remaining $7,255

Tax payable: $4,020 + $2,176.50 = $6,196.50. Add the 2% Medicare levy ($1,045.10) gives total deductions of $7,241.60. Take-home pay is about $45,013 per year, or $866 per week. This is a resident estimate that ignores HELP repayments, salary sacrifice, and the Medicare levy surcharge.

Why the index matters

The Salary Index helps you see where any pay rate falls relative to the national line. For the minimum wage, the index of 48.2 is a clear signal that it is a floor, not a living wage in many parts of the country. If you are negotiating a pay rise or comparing job offers, the index gives you a quick sense of whether a salary is above or below average. For more on how to use the index, visit our topics page.

Remember, the national minimum wage is just the legal minimum. Many employees are covered by modern awards or enterprise agreements that pay more. Always check the relevant award or agreement for your industry. The pay guides section can help you find the correct rate for your role.